Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Access to credit facility is a global problem for SMEs – CWG CEO

Fakoyejo Olalekan by Fakoyejo Olalekan
August 14, 2019
in Business News
SMEs credit Adeyipo
Share on FacebookShare on TwitterShare on Linkedin

Nigeria is not the only country where Small and Medium Enterprises (SMEs) experience difficulty accessing credit facility. According to the Acting Chief Executive Officer of CWG Plc, Adewale Adeyipo, small businesses in the United States experience the same struggle. 

Adebayo said there is nowhere in the world where the Small and Medium Enterprise exists as a perfect entity. It was learnt that the challenges faced by the entrepreneurs in Nigeria confront owners of small businesses in the developed world as well. 

For many SMEs in Nigeria, lack of financial support and tax incentives has been a barrier that is too high to overcome, and this has led to the demise of some small and medium businesses at their early stages, while for companies that were able to scale through, maintaining its deep-pocket investors is another struggle. 

RelatedPosts

Buhari approves reappointment of Patience Oniha as DG of Debt Management Office

MTN Nigeria appoints Onyinye Ikenna-Emeka as General Manager, Fixed Broadband

[READ MORE: MSMEs to get N154 billion credit facility from LAPO]

Although in recent years, SMEs have found comfort in private equity firms and venture capitalists, as banks are known to sideline small business owners from having access to credit for years. However, not every sector or market enjoys the privileges of private equity firms as most usually focus on tech-related businesses. 

To withstand the pressures of the business environment in Nigeria, Adeyipo advised that small and medium enterprises should keep evolving as new challenges arise. He stated that the significance of the SMEs to the growth of the economy can’t be overquantified. 

“The Small Business and Entrepreneurship Council (SBE Council) statistics revealed that 99.7% of U.S. (United States) businesses are SMEs. However, there are several barriers that the U.S. SME sector still faces, especially in commodities. The significant barriers to trading include insufficient access to finance, high transportation costs, tax laws, and rules, maintaining profitability, developing new products, language, and cultural differences. 

“Gaps like these signify no SME ecosystem is perfect, and they are required to keep evolving with time as new challenges arise. Despite the challenges in the SMEs market in the US, the sectors still contribute 47% of total employment. 

“While in developing economies like India, the contribution of the SME sector to manufacturing output, employment, and exports of the country is quite significant. It is noted that regarding the value, the SME sector of India accounts for 45% of the manufacturing output and 40% of the total exports. India’s SME sector employs around 42 million people in over 13 million units throughout the country.” 

[READ ALSO: DBN meets SMEs’ financial need with over N70 billion]

His statement regarding the essence of SMEs to a nation’s economy isn’t far from the truth, as SMEs in Nigeria contribute 48% of national GDP in the last five years, account for 96% of businesses and 84% of employment. With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector, in terms of the number of enterprises, this is according to a PWC report. 

Speaking on the need to provide more than financial support for SMEs, Adeyipo said policymakers need to ensure a friendly business environment to support the growth of SMEs. 

“Strategic implementation takes care of financial aspects, human resource, marketing, research and development, technology, and corporate governance in the SME sector. 

“SMEs in developed nations are not only relying on credit availability but technological innovation and infrastructural policies. Hence, it is critical for policymakers to create an enabling and sustainable environment as a bedrock for SMEs to flourish.”  

[READ FURTHER: 11,000 MSMEs secured N37bn loans in 2018 – Access Bank]

 

Related

Tags: Adewale Adeyipocredit facilitiesCWG PlcOn the MoneySMEs

Comments 2

  1. ALI GARBA BOODIMA says:
    March 2, 2022 at 2:40 pm

    I will like to apply for a loan of 1million naira to pay back in 12 month for this year farming season

    Reply
  2. ALI GARBA BOODIMA says:
    March 2, 2022 at 2:48 pm

    I will appreciate if l get the Credit facility and pay back at the end of 12month

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Buhari approves reappointment of Patience Oniha as DG of Debt Management Office
    • Bullish Nigerian Exchange gains N5.64 trillion in HY’2022
    • MTN Nigeria appoints Onyinye Ikenna-Emeka as General Manager, Fixed Broadband

    Follow us on social media:

    Recent News

    Buhari approves reappointment of Patience Oniha as DG of Debt Management Office

    Buhari approves reappointment of Patience Oniha as DG of Debt Management Office

    June 30, 2022
    Bulls stage a comeback at Nigerian stock market

    Bullish Nigerian Exchange gains N5.64 trillion in HY’2022

    June 30, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com